Thermal Paper Rolls Price Increase Update:
Effective with October paper orders, thermal paper mills have put all converters on allocation. These mills have been forced to allocate their tonnage due to a chemical supplier, Connect Chemicals in China, being located in a business park that is being temporarily shut down for environmental reasons. Connect Chemicals is the world’s largest producer of leuco dye, which is an essential component of thermal paper coating. They expect to be closed for at least three months, if not longer, as they modify operations to comply with environmental regulations. This shortage of leuco dye has already caused at least one major thermal paper mill to significantly reduce their output. A thermal paper shortage is very real and could last until mid 2018.
Due to R&R’s Office Solutions strong relationships in the market we have been given assurances that we will receive our historical averages of thermal paper purchases. We are committed to supporting the customers that have supported us through the years and want our valued business partners to know that we are doing everything possible to ensure their in no interruption in service due to the thermal paper roll shortage. We will be able to supply all of our customers with their average historical monthly volume.
We are hearing that the mills expect additional price increases before the end of the year. It is likely they will announce these increases soon and they will be effective immediately. We will continue to update you as additional information is available.